Include International Shipping For Greater Carbon tax Take, T&E tells UK
International shipping: outside UK carbon tax. File Image / Pixabay.
Taxing shipping emissions more fully could generate nearly £2 billion ($2.4bn) in income for the UK treasury, according to Brussels-based environmental group T&E.
UK shipping activity accounted for 22 million metric tonnes of carbon dioxide in 2021, T&E analysis showed. Taxing that would harvest £1.8 billion in revenue.
But present cap-and-trade proposals target shipping above 5,000 gross tonnage plying domestic routes and that means that ships on international routes will contribute nothing.
"The government is currently forfeiting nearly two billion pounds a year by not pricing shipping pollution," said Jon Hood, sustainable shipping manager at T&E UK.
UK shipping emissions need to halve by 2030 if the UK is to meet its climate targets.
The UK government has announced £77 million of funding to stimulate zero-emission shipping technology.